PwC: Make stamp duty optional

By Leith van Onselen

PwC tax partner Paul Abbey has suggested that state governments could progressively phase out stamp duty on residential property sales in favour of a tax regime based on land values. Abbey has proposed that buyers could opt to pay stamp duty immediately or pay an annual transfer duty replacement tax at a fixed rate of about 0.5%. Abbey notes that land tax is widely acknowledged as being more efficient than stamp duty. From The AFR:

“There’s a strong recognition that land tax is a more effective means of taxing land than stamp duty and that it eliminates a lot of the defects, but the issue that everyone struggles with is how do you make an effective transition?

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